GBAF Warns Future Financial Crises Could Stem from Non-Bank Sector

The Global Banking & Finance Review (GBAF) warns that the next systemic financial crisis is more likely to originate outside traditional banking, shifting to the non-bank financial sector. This sector, encompassing asset managers, hedge funds, and private credit, now accounts for 51% of global financial assets, growing at double the pace of banking assets in 2024. This highlights evolving risks in the financial system, as credit creation and risk-taking increasingly move beyond conventional banking oversight.